The Inflation Reduction Act caps your annual Medicare Part D drug costs at $2,100 in 2026 (up from $2,000 in 2025 due to indexing). Once you hit this limit, your covered drugs are free for the rest of the year - no catastrophic costs.

Medicare can now negotiate prices directly with manufacturers. The first 10 drugs (including Eliquis, Jardiance, Xarelto, and Enbrel) are priced under the new negotiated rates starting January 2026, with more drugs added each year through 2031.

Beginning July 1, 2026, Medicare Part D will cover GLP-1 medications (such as semaglutide / Ozempic / Wegovy) when prescribed for cardiovascular risk reduction in patients with existing heart disease. Weight-loss-only coverage is not included at this time.

The maximum Part D plan deductible for 2026 is $615. Many plans set their deductible lower - or waive it entirely on preferred tiers.

In the coverage gap, drug manufacturers now pay a 10% discount (up from 5%) on brand-name drugs. This counts toward your out-of-pocket total, helping you reach the $2,100 cap faster.